Cisco acquiring Flip Video-maker Pure Digital for $590 million in stock

Funny -- that patently absurd half a billion figure we heard tossed about earlier this month was low. In reality, Cisco has just announced its full intentions to acquire all of Pure Digital, the maker of the immensely popular Flip Video camcorder, for around $590 million in stock. According to Ned Hooper, senior vice president of Cisco's Corporate Development and Consumer Groups, the "acquisition of Pure Digital is key to Cisco's strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking." To an outsider, the move may seem somewhat odd; after all, what's Cisco doing spending this much on a consumer product? Let's just say that uploading HD video requires loads of bandwidth, and Cisco's all about that. Expect the deal to close in Cisco's fiscal fourth quarter of 2009.